>> let's turn our attention to what is happening in germany. >> shares are rallying today on speculation investors plan to -- 1.7 billion euros. hans nichols joins us. do we know about the investors? >> we know the origin. to take reebok from adidas. 's first halfeebok of the year, total sales about one billion u.s.. that is about 714 million in euros. of the challenges adidas has had. the euro is on a downward trajectory, but for most of the year, it has been so strong, it is eating away at their profits, especially in russia. they announced a profit warning. big problems with golf.
golf has not taken off the way they expected. a good world cup. we know that. the two teams in the final from adidas were world cup teams. can they be two companies? can it be fast casual, casual sportswear? they are making a big play into crossfit and can be for a leads -- for athletes? be when it comes down to, shoe performance or not. >> you figured it out. these things are inevitable. talk to me about what the appeal of reebok is. they have struggled about it and have never made it work to can someone else make this work better? have a single entity behind reebok, it could be focused and corner of this fast-growing segment of
crossfit, extreme sports. they have all of these contracts where you troll yourself through the mud. explodesossfit segment the way that some analysts expected to, there is one company positioned there, it may make sense for that company to be focused on that. what is to say adidas cannot do two things at once? sign big agents, signed sports players, and focus on the weekend warriors and reebok. the reported7 is price and billions of euros of reebok. adidas bought it in 2006 4 3 billion. they would be taking a cut. >> i am glad that nothing has changed. >> some things are permanent. your revocable. let's move on.
canceled more than 1000 flights after a pilots union has called another strike today. let's get the latest numbers and details from carry. where are we? what are we hearing from the company? 1004 hundred 50 flights over the next day and into tomorrow. these are the short and medium haul flights and it is going to be the mistake and into the rest of europe. domesticgoing to be and into the rest of europe. at 1:00 get an update p.m. and 3:00 p.m. as to the total cancellations. they will be able to operate about a third of their flights. we are telling passengers to check websites. you may be lucky to get on your plane. >> is there a ballpark figure? the than 1000 flights over
next two days. >> we will get an update later, that it is likely to rise. the 1450, that is only short and medium haul routes. are offering people the option to take a train instead if you can. drivers have finished their strike. >> it is very well coordinated. you always have options in germany. we are likely to hear more for tomorrow. a note was sent out saying watch the numbers, they are going to be fantastic. is there an obvious -- i am not booking with lufthansa, i'm going to shift my flights to iag. is there an upside here? >> the september low factors were pretty good. analysts had the profit warning
earlier this year and they are looking at the cu three -- of the q3 results. easyjet numbers have been incredible. they had a great until in france during those two week strikes. ryanair numbers have been strong. they are seeing competition for the low-cost sector, which is what they are trying to deal with here. it is proving to be a challenge with the pilots. >> thank you. luxurys look at the sector, the sector has been facing major headwinds, protesting hong kong, sanctions against russia and china. we asked a ceo if he was concerned about the market conditions. >> he tried to reassure the outlook in asia and in china, we are seeing he is taking it very
seriously because he is france's richest man and the head of the biggest luxury company. we had third-quarter revenue and he chose a slowdown, especially division, and -- partly because of the chinese government crackdown on luxury spending. i caught up with him at the integration of the -- foundation in paris. he told me he was confidence h could adapt to the deteriorating market conditions. slowe economy in europe is , it is better in the u.s., as you know. and slowingn brazil china.ightly in we have to adapt to that. to be number one in
20 years from now as we are today. and it has always been at its best economically, during tough times, so we are ready and if it happens. we are confident. telling me he is ready for this new challenge in asia. critics,he fact that the sales of personal luxury class will rise only 2%. >> the big event tonight is the inauguration of the louis --.ton had a chance to visit a foundation with bernard arnault
before the integration with the president very a new building in the heart of -- that is going to be a monument of paris. ,he ambition of bernard arnault to create buzz surrounding monument. he told me it was a way to give back to creativity vote by lvmh. have a listen. usually, in an industrial and sellive group, we work to the products, to do good progression of cash flow. something above al of this, especially in gloomy, global europe environment. >> we do not know how much the foundation cost us, but it is
believed to have cost more than 100 million euros. it will have to attract a lot of visitors. already become a tourist attraction for chinese and japanese visitors in paris. this is the same for the louis vuitton foundation. his vision is to attract at least one million visitors per year. target.is an ambitious prada has a foundation in venice. bad spot. there are worse places to hang out. let's stay in france and talk about what is happening. -- move would give him stake in the largest advertising company that happens to be run by his son. is our reporter.
the vehicle he is using to do it, slightly curious. some expecting -- to be off the table. why is he pulling the trigger on the transaction? >> the main reason he is doing has been on the cards for a long time, is , these bollore group investment vehicle did not have a lot of liquidity, so he is trying to push liquidity by putting more into the market. in a way, he is going to boost liquidity, even though this is going to be diluted for current shareholders because they are paying the premium offer for havas. in the long term, it will give access to more liquidity and diversification within the company.
>> this is a good thing in the long term. what does it mean for havas? >> access to more capital, it improves access to capital and strength tonancial go down the road, basically bollore will be there controlling the company. >> people will look at this and go to family transactions. they will be wondering about vivendi as well. they are all tied together. is this a way of bringing havas and of vivendi closer together or is it something different? >> in a way, it is different. end, what happens to one will happen to the other. s hands. bollore' i think they are separate
>> welcome back. we are here in london. talk about the dollar index over the last couple of days. higher. this gap is that on the back of the comments? i am not sure. you have the fed guy from boston weing out and -- saying could see qb extended in the united states. we are trailing at 8523 -- at 85.23. of a there is some sort link about what is happening. this idea that we have seen put forward by sir dudley, that we could see an extension of you we , -- of qe, maybe that will
stabilize the markets a little bit on the equity front, so maybe you are seeing market reaction. dollar index trading at 85 point 23. you did see a little bit of a move. the dollar closed around 85.20 on friday. has been drifting lower. nevertheless, situation where you have discoid -- discord coming out of the fed. step up and maybe add extra stimulus into stabilize the story. watch this space. >> the ruble has fallen to a record low after russia has cut its credit rating. president putin spoke about the state of rush upon said cona me. >> the ruble has declined dramatically.
>> is your the economy, the price of oil, and if you think it is the price of oil, as some people are saying, because of the popular theory in russia, that the price of oil is being manipulated by saudi arabia and the united states. regarding the national currency exchange rate, of course one way or another, it is connected to the state of the economy. the international and global situation, with regard to trade, oil and energy resource prices. it is have declined, and reflected on the economy and on budget revenues and therefore the national currency. at the same time, rush is one of the nations with the largest
reserves. the bank of russia will pursue a balance financial policy. this means it will use elements of a floating exchange rate and will not spend all of its reserves mindlessly. to adjust thent level of the national currency. i do not see changes here. i am confident when oil prices realign, the national current exchange rate, the ruble exchange rate will also shift. >> ryan is here now. he is not warned about these things. plenty of other people are, but he is not. >> he can see the budget may but to beach week to bit, call's5, 2016, 2017 foreign oil price of $96 a barrel and we are at $86 a barrel. thinks it is going to rebound because oil-producing countries
need between 80 and 90, like saudi arabia and the price he $80, so as soon as the price of brent gets down to they will stop producing and i will mean more scarce in the market any higher oil price. -- and that will mean more scarcity in the market and higher oil price. this is a longer standing trend. watch all things russia this week. the swedes have launched their biggest naval operation since the fall of the soviet union. they have a lot of water to go through. they have 30,000 islands. see the pictures.
so many islands to go in their search. have 200 troops on the mission. they think they heard a russian on thursday making a distress call on a distress call frequency. not surprisingly, if there was a sub, switched to a secret frequency after that. always trying to seize the headline anyway he can. we have gas talks in brussels. if i'm right about this, we may get a gas deal because they were confident on friday that they have a guest in a that would supply ukraine with gas over the weekend. >> i will take a little gas,
they can be used to our the alternative energy vehicle. >> climate change talks kicked off. binding eight -- a 2015 treaty will be. >> other company news. the chief financial officer will step down. he is leaving as a cfo. he will leave shire at the end of the first quarter of next year. the company will search for a replacement immediately. the largest business software supplier cut its four-year forecast. >> sluggish demand in russia and china wait on earnings. they are not set aside with the
surging this morning. they agreed to buy for $3.4 billion. the transaction expected to close in the first quarter of next year. the market looking at suggesting you may get an extra bitter. seeking to boost his investment in havas. at a 19.5%avas premium. havas shares are up about 7% now shares arelore lower. >> a few things happening over the last hour or so. >> have had the headline from the fixed from bloomberg. butttle to the market, straight back to where we are. #9% of 1%.
.90.wn julie is on course to finish this month. reducing sentiment on the margin a little bit. let's see the yield on the 10 year right now. 0.8 5%. i think the interesting thing that happened last week was the divergence. money coming out of spain and italy. risk aversion. look a yields and italy, slightly high through the morning. the yield, 2.5, 1%. we are coming back to where we started. pretty much as you were.
the euro dollar, dead flat. not the excitement we had in the middle of last week. >> plenty of time to go. from now,5 minutes surveillance with tom keene. he joins us with a preview. you are looking at the market route and the global economy. us.tephen king will join he is always opinionated, theicularly cautious on future of japan. david will join us from bank of america. the currency wars, but as well, david harrell will join us. you may not know the name david harrell, but chicago, one of our
great international investors and we will talk to lisa about value in the market. >> stephen king, one of my favorite guest, it will be interesting to have his take. thank you. france ministers find to berlin to meet with german counterparts. a question hangs over the french government. a lot to talk about. hans nichols has the details. what is on the agenda? previewednch have this trip and what they want is more spending from germany, which is what they talked about for a wild. they might be willing to make structural reforms. of the equation,
they said there will not be additional deficit spending, that they want to make their target. the goal, have the first balanced the jetsons 1969. tax receipts came in overnight. tax receipts coming and higher than expected. germany might be able to find more money to spend. unclear if they will be able to fudge that. of gdpkdrop, france 4.4% spending. you look at the countries that have been critical of the budget, germany has not been one. you have seen comments from the austrian and dutch. germany has been silent. when we have the meeting later both sideseems like are willing to hear each other space and they do not want to block each other in or back anyone into an untenable position.
>> i find that surprising. what do the germans get out of being softer on the french? overere is a great report the weekend, the germans may be preparing a deficit plan for the french. here in germany, berlin, they might be trying to write a .rench budget deficit i am not sure how that will go down in paris. we will see if there is a trade-off and if there is an announcement for new, additional >> i am certain that will not go down well. >> why spoke to the prime minister of france last week, he was pretty firm. the budget is going to go through as it is and he would not take any questions.
like a man that meant business. >> this report, we have not verified it ourselves great it are theyquestion -- offering technical assistance? goinge germans, they are to want something in return. they will want a sign from france it is very us about structural reforms to its economy. there is broad agreement in berlin. hans, great story. thank you. >> coming up, the new wave of mobile app companies that are giving traditional cab companies
the conference attracts some of the most creative and disruptive mines in the sector, including , whose startup is changing the way we carpool. we have discovered why it is called blah blah car. through hugeing amounts of disruption. how is it important you get together and talk about what is happening? how must you get out of turning up to something like this? . what we are showing today as we are going from ownership to usage. what we do is we allow drivers to share with passengers going a same way, which means people are the cars without owning them. this is the main changes we are
observing. it is important we have this message go through. >> how important is that you meet with other entrepreneurs? they are saying it is lonely. you need other entrepreneurs to feed off of, have better ideas, not necessarily guide you, but talk about your issues. it is very important. when you grow the structure, you know there is a startup phase and a scale phase. it is in the scale up phase that you need to know how they did to have the structure grow from a single small idea to something that gets bigger and then you organize everything so you can share a lot of insights about how you did that on those new jobs, because we are inventing on the way we deploy things. it is also inventing on how you deploy and scale your own
structure and through that, you are --. there are a lot of things we need to learn in exchange with other entrepreneurs to get faster. blablaust found out cars, i sign up, i want to share a car ride, i am getting a ride because i go on your website, are we compatible, blabla style? it is on mobile or on the web, you choose how chatty blabla,, you are bla, or blablabla. hence the name, blabla. one thing coming through his
regulatory oversight is becoming difficult to understand. when you go to these kind of conferences, what are you seeing, what are european groups saying about the regulatory environment? car, ouring blabla drivers to not make profit. we cut the prices. limits of sharing the cuts. as long as you share the cuts in the driver is not beneficial and since he is not making any profits and not competing with an existing activity, it makes all of the difference when it comes to the regulatory issues, because you are not changing the all of the professionals. , recently launching in the ukraine and russia, that must have been difficult because of sanctions.
>> we are bringing something new in those countries. a is a new service from getting from one city to the in countries like russia and ukraine, we are bringing a .olution to link two cities we are creating a new network for people to go from one city to the next and the growth has been exponential and we have received a good start. where are you in the scaling process? on a typicalneys day? in a typical week. where will that be in a year's time. >> we have about 2 million
travelers at the european scale. 2 million a month? >> 2 million a month. where did you start? >> 10 years ago. >> turkey is where you are seeing a lot of growth. what are your main concerns? top three concerns you have? >> the reason people join is to save money. will find ride sharing cheaper than the train. reason for joining, but
there's also the social angle because you do not want to drive alone. because it is it more ecological to be two or three to a car than it is to be 41. with theirare mainly own car, driving with people on board. -- you will find that as long as drivers do not make profit, insurance is not affected. driver-less cars, how does that affect your business? >> it would not change that much. whether or not there is a
driver, it works. you can have a driver-less car with passengers that we have matched through the system and there are for poor car -- four per car. >> it is like a train service at that stage. >> we would have to schedule for more cars. maybe it is less of a market-based like it is today. marketplace, which means that when a lot of people are going to the same place, a lot of people take their car and a lot of people are passengers. think that would happen? 10 years down the road? >> i am not the right person to answer that question. you have a business model to make way for that. >> yes. it is the same.
>> welcome back. you are watching "the pulse." let's talk about the dollar index. on friday, there was a sense that may be central banks would rise to the rescue, stabilize the situation, stimulus would carry on. a little hot water poured on that. time asill finish on anticipated in the united states. there was thought that maybe there would be an extension to the qe program in the states. markets are down.
it is hard to tell whether or not friday was a pause of breath or a reaction of central banks. the story this morning is that you are expecting more from the fed, do not hold your breath. >> as the u.k. capital's most valuable real estate gets snapped up, where does that leave londoners? >> if i was a tourist taking a video of london tower bridge, there would be no problem. i am here with my colleague, a professional cameraman. without a permit, i have no choice but to leave. the exception.t privatization of public area is the norm in london. the public has had enough. this is the largest property show.
the london mayor is a favorite target, in fact, the property i had to leave, land his office stands on, was bought by a creative firm for 1.7 billion pounds. clients -- which are investing. it is the right environment. >> it is a chance for the u.k.'s other cities to cash in. u.k. want to be alongside cities. we want to spread that message that we are open for business. investors own a lot of commercial property in the u.k. is this a smart way to build the city or is this caching in? we have a lot less money than
we had before. >> most will tell you it is business as usual, those running versusy face a standoff powering the u.k. economy and those that fuel it. >> interesting stuff. joined by our international correspondent, hans and a apple's numbers later. >> how many iphones did they sell? that will be a key number to look at. how far down was there tablet sales of the old tablet, the initial tablet they came out with very that is crucial for the future. you can use apple pay. that will not show up at the numbers. introduces a new product, you see at slightly
reflected in gdp figures. it has that amount of impact. ale well ceo speaking to bloomberg later on. aol's ceo speaking to bloomberg later on. what heesting to see talks about, advertising space, aol,uture avail well -- of of tech. >> flattery. to dig himself out of that hole. >> thank you. we are watching the ebola threat. an ebolaas declared threat. >> they are making that statement this morning. that is it for "the pulse." keep it here. surveillance is up next. you can follow us on twitter.
worldwide, markets are calm. interest-rate signal a punch bowl filled to the brim. carl icahn is on the edge of his seat. apple reports this afternoon. they will sell phones. cupertino will create cash flow. this is "bloomberg surveillance." york. live from new it is monday, october 20. i am tom keene with scarlet fu and brendan greeley. we need to get to the top stories. leading the news worldwide, ebola. >> in texas, dozens have been told they are no longer a risk of contracting ebola. they had contact with thomas eric duncan, who died of the disease. among them, health care workers and relatives. meanwhile, the government will issue new guidelines for treating ebola. very clearly, when you go into a hospital, have to database summit,